Stock investors, people who buy the market and other long-term investors would be interested to find out when is the best time enter the market.
Knowing “the right time” will increase the probability of making money as well as the probability of making most money.
It was recommended in the book “Secrets of Self-made Millionaires” to buy stocks during end September and early October period as historically, it is during this period that the market makes new lows within the year. The historical evidence for this is also presented at Investopedia. There is also the pre-holiday rally where stocks tend to rally ahead of 3-day holidays in the United States.
Then comes the January Effect, that also contributes to the Santa Claus Rally. For those looking for a quick buck, you may consider entering a day after Christmas. The Santa Claus Rally historically ends a few days after New Year’s Day.
This article titled “Capitalizing on Seasonal Effects” also presents other useful and interesting market timing research such as:
- Middle of a month is the best time to buy stocks
- Monday is the best day in a week to buy stocks
With the US presidential election 2008 up and coming, there are also ways to capitalize on this market-moving event.
a potentially lucrative investment strategy would have included buying on October 1 of the second year of the presidential election term and selling out on December 31 of year four.
Well, the above is based on historical data and I see it as more of a guideline. Cycles do adjust themselves. However, I definitely believe that some invisible would definitely be pushing up the market till the next US president is elected. There definitely must be some money to be made.
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